A nursing home fraud lawsuit survives dismissal over staffing misrepresentation claims.
Kathy Sherrod Survivor of Sheldon Sherrod v. Nexion Health At Marrero
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A nursing home fraud lawsuit survives dismissal over staffing misrepresentation claims.
Why it matters
In Kathy Sherrod Survivor of Sheldon Sherrod v. Nexion Health At Marrero, the U.S. District Court for the Eastern District of Louisiana considered a motion for summary judgment filed by the nursing home defendants seeking to dismiss a fraud claim brought by the surviving spouse of a former resident who died after suffering serious injuries during his stay. The court reviewed the defendants' three arguments for dismissal, including whether the claim fell under the Louisiana Medical Malpractice Act, whether the alleged misstatements concerned future rather than present facts, and whether there was sufficient evidence of intent to deceive. The opinion sets out the legal framework and competing arguments but, based on the provided text, does not yet state a final ruling on the merits of the motion.
Who it affects
This ruling is most relevant to nursing home residents and their families who believe they were misled about facility conditions at the time of admission, as well as nursing home operators who make representations about staffing levels during the admissions process.
What happens next
Current
Decision issued Oct 9, 2026
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Parties can ask the same court to reconsider. Then: possible appeal to the circuit court.
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- Decision issued Oct 9, 2026
- Possible rehearingParties can ask the same court to reconsider.
- Possible appeal to the circuit court
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Oct 9, 2026
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DEEPER READ
This case arises from the admission of Sheldon Sherrod to Marrero Healthcare Center, a nursing home in Louisiana, in August 2023. His wife, Kathy Sherrod, signed the admission paperwork after a facility representative told her the facility was 'very well staffed.' Mr. Sherrod spent four months at the facility, during which he allegedly suffered serious physical decline, including pressure injuries, an infection, and a below-the-knee amputation due to gangrene. He was discharged to hospice care and died in January 2024. Kathy Sherrod filed a single claim of fraud under Louisiana Civil Code article 1953, alleging that the defendants knowingly misrepresented that the facility was adequately staffed and concealed violations of state and federal staffing laws. She argues that if she had known the truth, she would never have admitted her husband to the facility. The defendants moved for summary judgment on three grounds. First, they argued the claim is really a medical malpractice claim governed by the Louisiana Medical Malpractice Act, citing a Louisiana Supreme Court decision involving similar nursing home staffing allegations. Second, they argued that fraud law only covers misstatements of present facts, not promises about future conduct, and that the staffing representations were really about what the facility would do going forward. Third, they argued there is no evidence that the defendants intentionally misled the Sherrods. The plaintiff countered that fraud under article 1953 is an intentional tort that falls outside the Medical Malpractice Act, that the staffing misrepresentation concerned the present state of the facility at the time of admission rather than future promises, and that the record contains enough evidence of intent to deceive to create a genuine factual dispute requiring a trial. The source text provided covers the background, the parties' arguments, and the legal standard for summary judgment, but does not include the court's ultimate ruling on whether summary judgment is granted or denied. No dissent is applicable in this district court proceeding.
CITATION AND RECORD
Record source: CourtListener
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA KATHY SHERROD, SURVIVOR OF * CIVIL ACTION NO. 25-1248 SHELDON SHERROD * JUDGE ELDON E. FALLON VERSUS * MAGISTRATE JUDGE NEXION HEALTH AT MARRERO, INC. EVA J. DOSSIER D/B/A MARRERO HEALTHCARE CENTER * AND NEXION HEALTH MANAGEMENT, INC. * * * * * * * * ORDER & REASONS Before the Court is a Motion for Summary Judgment filed by Nexion Health Management, Inc. and Nexion Health at Marrero, Inc. d/b/a Marrero Healthcare Center (collectively, “Defendants”). R. Doc. 114. Plaintiff Kathy Sherrod opposes the Motion. R. Doc. 133. Defendants replied. R. Doc. 153. After considering the record, briefing, and applicable law, the Court rules as follows: I. BACKGROUND Plaintiff is the surviving spouse of Sheldon Sherrod, a former resident of Marrero Healthcare Center, a nursing home owned and operated by Defendant Marrero Healthcare Center and managed by Defendant Nexion Health Management. R. Doc. 1-1 at 1–2. On August 22, 2023, Plaintiff visited Marrero Healthcare Center to inquire about Mr. Sherrod becoming a resident at the facility. R. Doc. 133-4 at 22–26, 33. At the time, Mr. Sherrod was experiencing difficulties with breathing and balance, and Plaintiff was no longer able to take care of him at home. R. Doc. 133-4 at 18. Plaintiff spoke with two facility representatives, including Marrero Healthcare’s admissions coordinator Brandy Bush. R. Doc. 133-4 at 24–25. Plaintiff represents that during a conversation, Ms. Bush told Plaintiff that Marrero Healthcare Center was “very well staffed.” R. Doc. 133 at 15. Plaintiff registered Mr. Sherrod as a resident by signing a Nursing Facility Admission and Financial Agreement and a Statement of Resident Rights form on Mr. Sherrod’s behalf. R. Doc. 133-3. Mr. Sherrod was transported from a local hospital to Marreo Healthcare Center later that day. R. Doc. 133-4 at 23–24. Mr. Sherrod resided at Marrero Healthcare Center for a period of four months, from August 22, 2023, to December 22, 2023. R. Doc. 1-1 at 1. Plaintiff avers that the facility was understaffed both on the day of Mr. Sherrod’s admission and throughout his residency. R. Doc. 133 at 24. Plaintiff maintains that Mr. Sherrod received inadequate care due to the staffing shortage, and as a result, experienced a marked and continuous deterioration in his physical condition, including the development or exacerbation of pressure injuries, skin lesions, deep tissue injuries, and an infection. R. Doc. 133-1 at 4–7.1 In November 2023, Mr. Sherrod underwent a below-the-knee amputation after the heel on his right foot developed gangrene. R. Doc. 133-1 at 8. Mr. Sherrod was discharged from Marrero Healthcare Center to hospice care on December 22, 2023, and died on January 10, 2024. Id. at 8. Plaintiff now proceeds against Defendants on a single claim of fraud pursuant to La. Civ. Code art. 1953. See R. Doc. 15. Plaintiff alleges that during the process of Mr. Sherrod’s admission into Marrero Healthcare Center, Defendants knowingly misrepresented their compliance with and intentionally concealed their violation of state and federal laws governing minimum staffing requirements at nursing homes. R. Doc. 133 at 2. Plaintiff alleges Defendants carried out this fraud in two main ways. First, Plaintiff maintains Ms. Bush’s statement that the facility was “very well staffed” was false at the time it was made and thus constituted fraud. Id. at 15. Second, Plaintiff maintains that Defendants committed fraud by silence when they failed to disclose the facility’s staffing shortage and violation of staffing laws. Id. at 15. Plaintiff represents that had she known 1 Plaintiff avers that Mr. Sherrod’s only injury at the time of his admission into Marrero Healthcare Center was a minor skin wound. the truth about the staffing shortage, she would not have signed the admission agreement and Mr. Sherrod would never have become a resident at the facility. Id. at 2. Plaintiff seeks damages resulting from Defendants’ fraud, as well as attorney’s fees. R. Doc. 1-1 at 11. II. PRESENT MOTION Defendants move for summary judgment on three grounds. Id. First, Defendants maintain that the conduct Plaintiff alleges constitutes medical malpractice under the Louisiana Medical Malpractice Act (“LMMA”). R. Doc. 114-1 at 8. To this end, Defendants rely on the recent Louisiana Supreme Court decision Broden v. Priority Management Group, L.L.C., 2025-01651 (La. 02/12/26), 427 So. 3d 726, in which the court held an administrative negligence claim which similarly involved nursing home understaffing allegations fell within the scope of the LMMA. Id. at 7. Second, Defendants argue that Plaintiff’s fraud claim fails as a matter of law because fraud can only be based on a misstatement of a present rather than future fact, and the core of Plaintiff’s claim concerns representations that Marrero Healthcare Center would provide adequate staff during Mr. Sherrod’s residency. Id. at 9–10. For this position, Defendants cite the Louisiana Second Circuit Court of Appeal’s decision in Bennett v. Pathway Management of Louisiana, LLC, 56,943, 2026 WL 2035869 (La. App. 2 Cir. 7/15/26), and its remark that “fraud cannot be predicated on unfulfilled promises or statements as to future events.” Id. at 10. Finally, Defendants maintain there is no record evidence showing that Defendants intentionally misled the Sherrods with respect to the staffing levels at Marrero Healthcare Center. Id. at 11. Plaintiff opposes the motion. R. Doc. 133. First, Plaintiff maintains that, as a matter of law, her claim falls outside the LMMA because fraud under art. 1953 is neither an unintentional tort nor a breach of contract claim. Id. at 9–10. Plaintiff further argues that the Louisiana Supreme Court’s decision in Broden is inapplicable because it concerned administrative negligence. Id. at 7. Second, Plaintiff maintains that her fraud claim is predicated on the misrepresentation of a present, rather than a future fact, namely Defendants’ representations that Marrero Healthcare Center was adequately staffed at the time Mr. Sherrod was admitted to the facility. Id. at 15. Finally, Plaintiff contends that record evidence creates a genuine factual dispute as to Defendants’ intent to deceive Plaintiff, precluding summary judgment. Id. at 18–25. III. LEGAL STANDARD Summary judgment is proper when “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The court must view the evidence in the light most favorable to the nonmovant. Coleman v. Hous. Indep. Sch. Dist., 113 F.3d 528, 533 (5th Cir. 1997). Initially, the movant bears the burden of presenting the basis for the motion; that is, the absence of a genuine issue as to any material fact or facts. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The burden then shifts to the
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